Car sales plunge sharply in August as buyers wait for GST rate reduction

Reacting to speculation of a significant GST (goods and services tax) rate cut, car sales in India fell sharply in August 2025 as buyers delayed purchases and dealers reduced stock orders.

- Arshad Khan @ New Delhi

Domestic passenger vehicle (PV) sales of India's largest carmaker—Maruti Suzuki (MSIL)—fell 8% year-on-year to 131,278 units in August 2025, down from 143,075 units in the corresponding month last year. Maruti's entry-level mini segment (Alto, S-Presso), where chances of a GST rate cut are high, fell to just 6,853 units in August 2025, a fall of 36% YoY.

The carmaker's SUV sales fell 14% to 54,043 units in August as it is preparing for a new model launch on September 3. Mahindra & Mahindra's SUV sales fell 9% YoY in August to 39,399 units, while Tata Motors' PV sales fell 7% to 41,001 units. Hyundai Motor saw its domestic PV sales falling by 11% YoY to 44,001 units.